DC Edit | India in Big Tech Focus, Govt Must Get on AI Bus

Global technology companies have pledged over $70 billion to build artificial intelligence (AI) and cloud infrastructure in India as the race to tap the country’s market potential heats up. This investment commitment underscores the importance of India for Western technology companies.

Of this, Microsoft alone has committed $17.5 billion — its largest investment in Asia — to develop the biggest cloud-computing footprint in the country by 2030. Google has pledged $15 billion toward AI data centres, while Amazon plans to invest more than $35 billion to expand AI capabilities, logistics, and exports.

AI-grade data centres will expand cloud capacity, create high-value jobs and spur local startups. They will make computing more accessible across sectors — from agriculture to healthcare to governance — lowering traditional barriers to AI adoption. Microsoft’s plan to train two crore Indians in AI skills by 2030, and Amazon’s pledge to create one million new job opportunities, could shape India’s digital economy for the next decade.

However, data centres alone do not make India a technology superpower. They build capacity for consumption, not creation. It is in creation — particularly at the scale achieved by China — that India still falls short.

Though governments at both the Centre and the states are encouraging students to learn AI and computational skills from early classes to prepare young populations for an AI-first future, the country needs to do far more to recoup the years it has lost in the AI race.

China spends over 2.5 per cent of its GDP on R&D, more than four times India’s commitment. India must, therefore, increase its research and development expenditure. The country should encourage its top universities to focus on long-horizon, high-risk research.

AI labs in China work closely with state-owned research centres on developing new technologies. India, however, has lacked structured public–private integration, which the government must strengthen by setting up a national research grid comprising academia and industry.

Artificial intelligence is considered a disruptive technology because it can replace many workers. India has lagged behind China in developing foundational AI, and catching up will take time. However, training people to adopt AI for various applications will not be difficult.

India should therefore focus on utilising AI’s enormous computational power to improve human lives. Several organisations are already using AI for applications such as managing vehicular traffic or handling queue management at the famous Tirumala temple. AI can also be harnessed in agriculture to detect and prevent crop diseases, resulting in higher yields. Similarly, AI is proving to be of great help in medical diagnostics and paralegal activities.

The deployment of AI, therefore, could be an easy and achievable target for India. Once Indian youth understand the potential of AI — both in terms of its ability to change the world and its career prospects — AI talent will gather unstoppable momentum. Until that moment arrives, the government must play its role as a guide and facilitator. It should encourage the use of AI without overstepping moral and ethical boundaries.